Oil prices remain muted despite positive economic data from China

Reuters reports that oil prices were little changed in early trading on Tuesday. Concerns over global economic growth and a potential de-escalation in Eastern Europe offset positive statistics from China and growing instability in the Middle East, which could affect the supply.

Nevertheless, the economic data of China, which showed an acceleration of retail sales growth in January and February, made investors optimistic, despite factory output declining and the urban unemployment rate reaching a record high in two years.

Meanwhile, the Organization for Economic Cooperation and Development says that Donald Trump's tariffs on imports will lead to a slowdown in GDP growth of the US, Mexico and Canada. This, in turn, may negatively affect the energy demand and cause a decline in the oil prices.

Westpac strategist Robert Rennie believes oil prices will continue to fall and will eventually reach the level of about $65 due to surging global supply and escalating trade tensions.